Moody's To Israel: We Like What We See

As Israel's economy continues to make impressive strides despite the global recession affecting our planet (especially in the real estate and automobile industry), it looks as if Moody's has finally given the tiny Jewish state the recognition it deserves.

(Haaretz.com) International ratings agency Moody's raised Israel's foreign and local currency bond ratings from A2 to A1 late last Thursday. This is the highest rating ever granted by Moody's to Israel. Moody's said Israel's competitive advantage in high tech and its relatively high standard of living, as well as its sophisticated financial markets and government institutions show Israel is no longer a developing country. If it was not for Israel's relatively high debt and its special security situation, its credit ratings would be even higher, explained Moody's. In addition, Moody's raised the foreign currency ceiling for bank deposits to A1, too. Moody's has now fallen in line with S&P and Fitch, who both upgraded Israel at the end of 2007. (Moti Bassok)

This is good news for Israel, as news like this encourages investors to take a second look at the Jewish state, especially with the global economy in a state of "flux" (due in part to the collapse of the American housing market).

(Image Credit: ATSnotes.com)

Is Israel Car Dealer Heaven?

With the slumping market in the American auto industry, many car dealers (not to mention US politicians) may want to consider taking a second look at Israel in order to determine why the holy land is escaping the auto industry curse.

(Haaretz.com) Signs of an economic slowdown may be appearing all over, but they have not affected new car sales. In fact, Israelis are buying new vehicles at an ever growing pace. New car sales jumped 40% in the first quarter of 2008 to 61,100. March was a particularly good month with 21,553 new vehicles sold. This is a 57% rise over March of 2007. [...]

[R]ental companies bought new cars in preparation for a larger number of tourists starting with the Passover holidays, and the shekel's rise against the dollar and other currencies helped importers to increase the discounts they give to both private customers and leasing companies.

Lower vehicle taxes, which took effect this January, also encouraged purchases of new cars.

Note: Emphasis mine.

Lower taxes may have something to do with Israel's booming car industry, which has been improving since the beginning of this year.

But while some may credit a good economy or just a favorable environment, Israel may benefit from the fact that the car industry is looking to free itself from the burden of oil.

With upcoming breakthrough's in hydrogen power, not to mention electric flying cars, Israel may soon be positioning itself as a major player in the auto industry worldwide.

Real Estate Agents May Want To Move To Israel

With the housing market doing not to well in the land of opportunity, Israel seems to be singing a different beat when it comes to its national real estate market.

(Israel National News) Forbes business magazine has rated Israel as the world's most "up-and-coming" real estate market, according to Globes online business magazine. Forbes projects positive growth in the future, stating "macro conditions in Israel favor more wealth creation, as the economy has corrected its deflation problems and grown at a 5% rate for two years."

For some strange reason, the Israeli's have been largely unaffected by the general slump occurring in the global market (something that is honestly quite baffling).

Does anybody have any good guesses as to why?

France And Israel Partnering Up In The Stock Market?

It looks as if the governments of France and Israel are opening their capital markets to each other, making it even easier for investors from either side to conduct business.

(Globes Online) The Israel Securities Authority and France's L'Autorite des Marchés Financiers (AMF) have signed a memorandum of understanding (MOU) opening their respective capital markets to trade in securities issued by both Israeli and French companies. The agreement will be based on mutual reliance of both agencies on the regulation existing in the other's country. [...]

The Securities Authority noted, "The concept underlying the agreement is similar to the single passport principle used by EU countries in relation to the regulation and supervision of European financial markets. [...] This process permits the EU states to recognize and rely upon each other's regulatory regimes and thus to dispense with any additional regulatory requirements in excess of those of the issuing company's home member state."

This should make it much easier for French citizens to invest in Israel (and vice versa), boosting each nations respective economies.

Israel's economy is already doing very well thanks to tourism, although having more foreign money pour into the Jewish state can't help.

Trade Between Israel And Nigeria Reaches $1 Billion

(Image: Map of Nigeria, Credit: Oxford Cartographers via Commmonwealth Secretariat)

Despite being predominantly Muslim, the nation of Nigeria seems to be very comfortable trading with their Jewish counterpart--which may be a sign of the times that the middle east is becoming Israeli friendly.

(Israel National News) Israel and Nigeria now do business annually to the tune of some $1 billion, Prime Minister Ehud Olmert's office said ahead of a meeting between Olmert and Nigerian Vice-President Goodluck Jonathan, who is in Israel to raise interest among Israeli investors for projects in his country. [...]

Besides being one of the world's largest producers of crude oil, Nigeria offers opportunities in power generation, mining, agriculture and manufacturing, he said.

Israel is already helping Nigeria turn their deserts into gardens and this latest figure should help strengthen relations between the countries, at least economically.

Note: Hopefully the two nations will move beyond the status trading partners, as Nigeria could offer the Israeli Space Agency a nice plot of land to launch rockets from.

Israeli Car Industry: Business Is Good!

While the auto industry in the US is going through their own trials and tribulations, the Israeli car industry is experiencing nothing but sunshine.

(Globes Online) Israel's automotive sector ended one of the best years in its history yesterday, with more than 190,000 new cars, including taxis meeting Israel's roads in 2008. Nearly all importers saw double digit growth in deliveries, across all segments in 2007, compared with 2006, with the family vehicle segment recording exceptionally strong growth, including the niche and luxury vehicle segments.

Israel's strong auto market is a bit of a mystery (note: at least to me), but it may have something to do with the new hybrid demand as well as stronger purchases by businesses instead of the typical consumer.

Related Note: Israel may once again revolutionize the world next year when their flying car debuts.

Another Free Trade Agreement? (Israel And South America)

After seeking out Free Trade Agreements with India and Ukraine, Israel is setting its sights half a world away towards South America.

(Ha'aretz) Mercosur, the South American trade bloc, signed a free-trade agreement with Israel on Tuesday, its first pact with a country outside of Latin America. [...]

"This agreement is an enormous satisfaction that will help develop our links to the Mercosur countries," a statement from the Israeli Embassy in Argentina said. Trade between Israel and Mercosur countries neared $1.6 billion in 2006. Mercosur is comprised of full members Argentina, Brazil, Paraguay and Uruguay, with Venezuela awaiting approval to join the trade group.

Israel already has free trade agreements with the United States, so this latest edition will hopefully position the Jewish state as "the middle man" between Mercosur and the US (who have yet to sign anything with each other).

This will also open up Israeli businesses to a "whole new market," which probably will benefit both regions over time.

Would You Pay $200,000 For A North American Immigrant?

It looks as if Israel will (in the future) be ramping up their Aliyah campaign for Jews living in North America (which probably refers to Jews living in the United States and Canada, as I am not too sure what the Jewish society is like in Mexico).

A new study has recently come out highlighting that a Jew who commits Aliyah (or immigrates to Israel) may be worth up to $200,000 a piece!

(Globes Online) A study on the economic impact of immigration from North America found that the value to the Israeli economy of an immigrant from there was $200,000. This estimate is based on level of education, professional experience, participation in the labor force after immigrating, and financial assets. The study found that immigrants from North America had a 90% rate of participation in the labor force after one year in Israel.

This rate of participation is far greater than the participation rate of Israelis and of immigrants from many other areas. In addition, the average output of an immigrant from North America is $24,000 a year. Two-thirds bought a car within a year of arrival.

Although there have been many reports of Jews making Aliyah from North America, this part of the word seems to be the hardest when it comes to marketing the promises of the holy land.

So my fellow Israeli (or pro-Israeli readers), how can Israel do a better job of convincing Jews from the US or Canada to cross the ocean and put their stake in American soil?

Alan Greenspan Praises Israel's Economy

It looks like the former US chairman Alan Greenspan is praising the Jewish state's economy for thriving in one of the world's roughest regions.

(Israel National News) Outgoing US Federal Reserve Chairman Alan Greenspan wrote in his new book "The Age of Turbulence: Adventures in a New World" that Israel's economic growth demonstrates that economies can thrive even in times of violent conflict.

Greenspan writes that he draws encouragement from the ability of market economies to hold on in the face of violence and the threat of violence. He also cites Lebanon and Iraq as examples.

Despite the "love treatment" Israel is experiencing from its neighbors, Israeli citizens experience a life style similar to that of their American friends over seas.

Note: For those wondering whether or not their actually is more to life in the holy land beside what they see in the news, Isrealli has a video of "a regular Joe" showing what life really is like in Israel.

Water Technology Exports May Reach $1 Billlion

(Image Credit: Tulpehocken Mountain Spring Water)


Israel's water technology sector may reach over a billion dollars in exports by the end of this year!

(Globes Online) A Ministry of Industry Trade and Labor survey of Israel's water technologies industry predicts that exports will grow 28% to $1.1 billion in 2007. The sector had $850 million in exports in 2006, up 21% on 2005. The ministry attributes the sector’s rapid growth to higher sales by existing companies and exports of newly launched products by start-ups.

270 companies and institutes are active in the water technologies sector, including 60 start-ups. The industry has an estimated 8,000 employees.

Despite the fact that the nation of Israel is located in (what some may call) a desert, through innovation Israel has been able to turn this wasteland into an oasis.

Israel is already recognized worldwide for its contributions towards this industry, with countries like China interested in acquiring the "know how" when it comes to dealing with H₂O.

Currently the water industry market is hovering over $400 billion (according to Globes), and it will be interesting to see Israel's influence in the arena grow as the demand for expertise expands in the near future.

Israel Seeking Free Trade Agreement With India

It looks like the economic ties between the two nations is just about to grow a little stronger!

(MoneyControl.com) Israel is keen on forging a free trade agreement with India on the back of robust economic relations between the two countries that began in 1992. [...]

Mr Kumar said that the Israeli Minister sought to involve Israeli companies in infrastructure development in India for the forthcoming Commonwealth Games in 2010.

Israel's technology side should compliment India's population very well as they seem to have a lot of people (at least in my encounters online) eager to impact the world wide web (or rather Web 2.0).

This should also help some Israeli's looking for work abroad hook up with an emerging super power--at least economically.

Note: With India and China pursuing financial ties to Israel, the world does not look so lonely for this kosher state.

Norway Has A Secret Crush On Israeli Investments

(Image Credit: Kwintessential)


They say that the best way to know a person is by what they spend their money on. If that saying is true, then it seems that Norway is trying to have a secret affair with Israeli innovation while shunning them in public.

Unfortunately for Norway, her affair is no longer a secret.

(Israel National News) Norway's Government Pension Fund Global, formerly known as the National Petroleum Fund, has comne under fire for its investments in Israel. The fund has doubled its investments in Israel over the past year. In 2006 the Fund bought Israeli government bonds worth $500 million Norwegian kroners ($87.4 million).

Norway previously attempted a national boycott of the Jewish state which ironically backfired and brought in more business towards Israelis companies.

Realizing this, Norway is probably attempting to get "their fair share" of the pie (or Falafel for those in the holy land), although this latest news may indicate Europe's secret love for Israel--at least in the business arena.

BIRD Foundation To Improve US-Israel Cooperation

There seems to be a unique foundation whose sole purpose is to help improve the economic ties between the land of opportunity and the holy land. Both the Israeli government as well as their American friends may be thinking about doubling the financial support for this group, which can only benefit both economies.

(Globes Online) "Doubling the BIRD Foundation's capital will enable the foundation to double its activity, in other words, to increase the number of ventures that we will be able to support, increase investment in each venture, or decide how to combine the two options," [Dr. Eitan Yudilevich] said.

The BIRD Foundation supports joint ventures by US and Israeli high-tech companies by finding strategic partners in the two countries and financing the development of joint products. Over the past 30 years, the foundation has funded 740 projects, which have generated $8 billion in direct and indirect sales.

What makes this foundation unique from an "investors club" is the fact that businesses receiving funds are not required to pay back the money in the event of failure.

This encourages businesses with innovative ideas to flourish, resulting in cooperation between the two nations. Of course, if these companies are successful, the royalties they earn go back to the BIRD Foundation who then can take the funds for further investment, or to help out other industries.

Note: Readers can visit the foundation over here.

Israel Becoming A Competitive Place To Work?

Despite the regional events, it looks like Israel has climbed three notches in the overall most competitive places to work on planet Earth. The US (of course) is number one, but Israel has moved up to the 21^st spot.

(Globes Online) Israel's economy has climbed three places to 21st place in the World Competitiveness Yearbook rankings, published by the International Institute for Management Development (IMD), which is based in Lausanne, Switzerland.

The survey, which was published today, ranks 55 countries according 323 economic criteria, and is based on data collated from business entities worldwide. Israel is ranked in 20th place for economic strength, unchanged from last year. However, it has climbed 20 places, from 45th to 25th in the ratings for international investment.

Globes has more details regarding this, with exact specifics for those of you who enjoy the "nitty gritty details," but this goes to show that Israel continues to display not only a strong economy in the present, but a healthy outlook towards the future as well.

Kosher Corporations In Vietnam?

(Image Credit: Clinton Foundation)


I knew that Israel has corporate influence in the east, but I never suspected that their influence extended well into Vietnam.

(Israel National News) With Agriculture Minister Shalom Simchon on his way to Vietnam for an official visit, it has been reported that no fewer than 200 Israeli companies are doing business in Vietnam - including 40 that began this year. So says Export Institute Director Yechiel Asiyah. [...]

Israel's exports to Vietnam have grown by 3% since last year, and now total $36.6 million. Israel's chief exports to Vietnam are mineral and mining products ($9.8 million), telecommunications ($9.7 million, a growth of 35%), and chemicals ($6.6 million).

Although Vietnam is not known for having an exactly "pleasant history" (or even a "pleasant present"), it is good to see them reaching out towards other nations in order to improve themselves--technologically wise at least.

Foreigners Interested In Israeli Real Estate?

(Image: Yoo building project in Tel Aviv, Credit: Brian Hendler, via JTA.org)


The interesting item about this article is not about the buildings (or even who is investing in them) but the fact that the city of Tel Aviv has drastically changed so much since the 1980's.

So much in fact that one New Yorker had this to say about the improvements.

(Jewish Telegraphic Agency) "The first time I was here was in 1983, and Tel Aviv has gone through a huge transformation from then to now," said Howard Glatzer, who runs a real estate fund that invests in New York City properties. "As a Jew from New York who is very accustomed to seeing high-rises everywhere, I think it's fantastic, it shows the vitality of Israel, and that's great." [...]

In 2002, foreign buyers invested $192 million in Israeli real estate. Just four years later the number had soared to $1.43 billion, according to the Bank of Israel.

Although many of the people investing in Israel are Israeli's themselves, the fact that wealthy individuals are risking a large portion of their capital in Israeli real estate speaks volumes about the nation.

Even Donald Trump seems to be investing in Israeli property, and there is speculation that he may construct a building there as well.

I've been scouting out Israeli property myself, and although the prices are a little expensive, the view of the land seems to be incredible (and well worth the cost).

Microsoft Looking For A Few Good Israelis

Software king giant Microsoft is on the prowl again for some tech savvy engineers after acquiring an Israeli start-up not too long ago.

(Globes Online) The company has opened its second development center in Israel, a year after appointing corporate VP Moshe Lichtman to run it and acquiring 3 Israeli start-ups. [...]

The company will begin intensive recruitment of 150 employees, mostly software developers, for the center next week, and plans to complete hiring within a few months. Microsoft Israel confirmed that the company would shortly begin recruitment.

It seems like Microsoft is attempting to position itself as the dominant internet company in the region, in order to thwart Google's attempts at carving out Israeli talent for itself.

Either way, this spells good news for the Israeli economy, although I wonder when Yahoo! is going to enter into the fray?

Moody: Israel's Economy In A Good Mood

The investment sector continues to hold its own in the Kosher state, as Moody has taken a positive outlook regarding the future of Israel.

(Globes Online) Moody's Vice President Kristin Lindow said, "The Israeli economy is in the midst of a prolonged upturn that was only briefly affected by last year's war with Hizbullah, the militant Islamic movement based in Lebanon. Growth has averaged 5% for the last three years, yet the current account surplus actually widened further each year and inflation was nonexistent in 2006."

Hopefully I'll be able to find some more good news regarding Israel's economy, as news like this counters the thought that conflict zones are bad places to invest. Israel (according to Moody) seems to have a bright future ahead of it, which is an indicator on the underlining strength of the nation.

Israel Exports And Housing Are Up

Okay, unless you are an investor, you may find this news to be slightly boring. But if you are an investor, this news should make you ponder about international markets such as Israel as a potential field to "sow and reap" in.

(Globes Online) Exports (excluding diamonds, ships and planes) rose by an annualized 6.7% in December 2006-February 2007, the Central Bureau of Statistics reports. Manufactured exports rose by an annualized 5% and high-tech exports rose by 8%. Imports of investment goods rose by an annualized 38%.

The data indicate that the economy is still growing faster than expected, including fairly rapid increase in private consumption.

As far as the housing goes...

(Globes Online) New home sales rose by an annualized 23% in November 2006-February 2007, compared with July-October 2006, the Central Bureau of Statistics reported today. Average monthly sales were 1,165 units, compared with 944 in July-October 2006. 1,270 new homes were sold in February, of which 1,070 were under construction and 170 were completed.

This is definitely good news to hear about! I plan on eventually living in Israel in the future (within the next couple of years) and have already been looking at some locations, especially in Tel Aviv, Netanya and possibly Haifa (the last one I hear is a "geek paradise" or a kosher version of Silicon Valley).

Hopefully this trend will continue for the next several months (although not too fast as I would like to actually be able to afford investing in Israel's growth).

Israel's Foreign Debt Falls By 50 Percent

This definitely is a record for the Israeli state! Despite all that's going on, it looks like the economy is doing fairly well in Israel.

(Globes Online) The Bank of Israel said, "The balance of assets abroad totaled about $156 billion at end of 2006, a rise of $34 billion on the end-2005 position. Most of this increase was due to an increase of about $13 billion in direct investments, with the Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) deal contributing some $10 billion of this. Portfolio investments grew by $10 billion due to continuing portfolio adjustments in the private non-banking sector in light of the tax reform."

The article later on mentions foreign investment also playing a role in the Israeli state, which means that people seem to be talking with their wallets in regards to their affection towards the Jewish state.

Props to all of those who made this happen (now if only I could get a piece of the action then I would be all set ;-))